Business Opportunities Weblog

March 22, 2006 by Dane Carlson | 0 Comments

MSNBC:

A recent study sponsored by the SBA’s Office of Advocacy found that finance companies are indeed big backers of small businesses, ranking as the second-most important institutional suppliers of credit to small firms. According to the SBA study, vehicle and equipment loans and capital leases are especially popular finance company offerings.

Their willingness to fund specialized equipment and offer longer lease terms and flexible payment plans is a primary reason for their appeal. At the same time, many small businesses have turned to finance companies because of dissatisfaction with the banking industry–the megabanks in particular–according to business growth strategist Andrew Sherman. “There isn’t the loyalty to large commercial banks that there used to be. [With] all the mergers and acquisitions and the drop in customer service, many small businesses feel ignored,” observes Sherman, co-founder of Grow Fast Grow Right Enterprises LLC, a Rockville, Maryland, training and education company for rapid-growth and middle-market companies. “These commercial finance companies have stepped in and tried to provide great customer service.”

It’s an opportune time for entrepreneurs to tap this growing capital source, adds Sherman. “More and more of these finance companies have popped up over the years,” he says, “and that has made market conditions more competitive. And when market conditions are more competitive, that usually favors the borrower.”

via Linda Riley.

In Financing | 0 Comments